People have many different reasons for buying or selling a property especially at property auctions scotland. Need more space, need less space, need a change, or financial reasons. Whatever your reason, if you need to sell your home, if you can get help in any way…..take it. Some people buy property to let, giving other people who cannot afford to buy a property the opportunity to rent the type of home they need.
Here is an article/guide, which explains a little about property buying for letting.
Thinking of buying a property to let?
With four million households renting privately, the buy-to-let sector is booming and demand for rental property is at an all-time high.
For some, buy-to-let is an opportunity to create a nest egg or pension, for others, letting out their property is the best option when life throws a curveball – either due to relocation, a change in your relationship or financial circumstance.
- Research the market and choose your property carefully
Buy-to-let involves committing a lot of money and typically taking out a mortgage. If house price rise, it’s possible to make big leveraged gains above your mortgage debt, but when they fall, your deposit gets hit and the mortgage stays the same. Think carefully, as your money might be able to perform better elsewhere, say a high-rate savings account. When choosing a property, think about your target tenant. I always advise buying a house rather than a flat. This widens your options for tenants to almost anyone – a singleton, students or a family. A small one or two bed flat will probably only appeal to a couple. Think about transport links and schools. Look where property prices are high – the higher the sales prices, the bigger the demand for property and this will echo in demand for rentals. I would advise looking in London and the Home Counties, but if you can’t afford that, it’s worth looking at university cities and towns in the North, where there’s a steady flow of students looking for accommodation.
- Do the maths – does letting out your property make financial sense?
Work out how much rent you can expect to receive from the property each month versus how much the mortgage is per month. Look at the other costs involved, e.g. agents fees, maintenance fees, landlords insurance etc. Bottom line, if you can cover the mortgage and all other costs each month, you’ve still got someone in the property paying the mortgage for you . Any income you realise over and above that each month is a bonus.
It is important to get the right price for your home. Overpricing your home can result in it not selling at all. If you underprice your home, it could sell quickly but then you are out of pocket. If you need to sell your house quickly for whatever reason, www.soldquickly.co.uk have the ability to help you do so.
Here is a guide which may be helpful when thinking about selling your home, or even buying one. http://www.nationwide.co.uk/guides/planning-for-life-events/moving-home/planning-your-move
Buying and selling property
If you’re buying or selling your home, you need to decide what order you want to do things in. There are three main options:
1. Buying and selling at the same time: this is the ideal situation, and if you can achieve it, you won’t have to take out a bridging loan to cover the cost of buying a new property before you’ve sold your old one. You also won’t have to keep all your possessions in storage. However, buying and selling simultaneously isn’t always easy to do.
2. Selling first: this puts you in a stronger position because you’ll be chain-free; you won’t have a property you have to sell when you look to buy a property. This means you can move faster when you find somewhere you want. However, there are disadvantages. You’ll need to first move into a rented place (or stay with friends or relatives while you look for a place to buy), then move again when you buy your new home.
Another potential issue is that prices may go up while you’re still looking leaving you less choice. You could make an agreement with the buyer to take your home off the market until you find somewhere appropriate to buy, but this would involve careful negotiation.
3. Buying first: if you do this, you’ll probably need a bridging loan to cover the price of your new home, plus you’ll have the expenses of having two homes at once. You also may be more vulnerable to buyers trying to drive down the price.
Selling your house is not just a case of putting it on the market and waiting until someone buys it. To be able to sell your house fast scotland you must make it desirable and appealing. You want people to come into your home and feel like they would love to live there. Make sure its clean, tidy and any general repairs have been done. But also add little touches, such as flowers, candles, and maybe an ornament or two. Think about the way you would like a house to look if you were viewing.